ShippingCow3PL vs in-house warehouse
Fixed costs against variable ones, and what changes when your products are heavy.
Running fulfillment in-house means fixed costs (lease, labour, equipment, software) that do not flex with volume. A 3PL converts those into variable per-order costs and adds distributed inventory. For heavy products the decision usually turns on whether one warehouse location costs more in shipping zones than a second facility would cost to run.
| Compared on | Your own warehouse | A 3PL |
|---|---|---|
| Cost structure | Fixed, lease, labour, equipment | Variable per order |
| Control | Total | Contractual |
| Scaling up | Slow and capital-intensive | Fast |
| Scaling down | Very hard | Fast |
| Peak staffing | Your problem | Theirs |
| Multi-region | A second lease | A second location on the same contract |
| Custom processes | Anything you want | What the contract covers |
| Knowing what it costs | Buried across payroll, rent and freight | On an invoice |
The last row cuts both ways. A 3PL invoice is honest in a way in-house costs rarely are, which is sometimes why the comparison looks unfavourable to the 3PL.
The heavy-product wrinkle
For brands shipping 50 to 149 lb, one factor usually dominates the table: a single warehouse means long zones to half the country, and on heavy parcels the zone is most of the bill. The real question is one location or several, and a second lease is a much bigger commitment than a second 3PL node.
When in-house is right
Low volume, one region, custom or regulated processes, or a product that needs handling by the people who built it.
Questions
When should I switch from in-house to a 3PL? +
Common triggers: running out of space, a peak you cannot staff, or shipping cost growing faster than revenue because everything ships from one place.
Is a 3PL cheaper than in-house? +
Per order, sometimes. More usefully, it is variable rather than fixed.
Can I keep some in-house and use a 3PL for the rest? +
Yes, and for heavy products a hybrid is often a sensible first step.
Qualify, and your first pallet is on us: we truck it in and receive it. For customers who pass the Cost Audit. One pallet.